Changes proposed to tax legislation for companies and individuals

Recently elected Chilean President, Michelle Bachelet, has announced significant changes to the current Chilean tax legislation for both companies and individuals. Per a document sent to the Chilean Congress by the President, the changes are designed to soften the inequality between rich and poor, mainly to fund areas such as public education.

Further analysis is likely required to determine the impact of these changes on tax costs and reporting processes for both companies and individuals. The proposal is subject to Chilean Congress approval where the President's coalition has majority. If ratified by the Chilean Congress, most of the proposed changes for individuals will be gradually put in force, and would not immediately affect taxpayers.